Cousins Properties has formed a joint venture with Riverside Resources and Ironwood Real Estate to develop 300 Colorado, a 309,000-square-foot office tower in downtown Austin. Cousins and its partners anticipate starting construction on the project this year in December, with delivery slated for December 2020.

Total development cost is estimated at approximately $175 million and Cousins will own a 50 percent stake in the joint venture. Located across the street from Cousins’ Colorado Tower, the 31-story building will rise on the site of the former Sullivan’s Steakhouse at 300 Colorado St. Ironwood Real Estate acquired the site in 2006 and originally planned to build a residential tower in partnership with Riverside Resources.

Fully preleased asset

The project is 100 percent preleased: Parsley Energy signed a 302,000-square-foot, 12-year lease and Del Frisco’s has agreed to occupy 7,000 square feet for 10 years. Cousins recently inked a 14-year lease with WeWork at Terminus 100, a Class A+ Atlanta office tower.

In addition to the new lease at 300 Colorado, Parsley Energy will continue to occupy 135,000 square feet at Cousins’ Colorado Tower, currently fully leased. The oil and natural gas company moved its headquarters from Midland, Texas, to Cousins’ high-rise in 2014.

“Cousins has developed some of the premier office properties in Austin and this building will be no exception,” said Bryan Sheffield, chairman & CEO of Parsley Energy, in a prepared statement. “In addition to the quality of their properties, Cousins has demonstrated a commitment to meeting our business needs and helping facilitate our rapid growth.”